Blockchain-based Financial Innovations in Energy Systems: A Framework for Sustainable Adoption

The rapid transformation of global energy systems necessitates innovative financial mechanisms to ensure efficiency, transparency, and sustainability. Blockchain technology offers a disruptive solution through decentralized platforms for energy trading and financing. This paper examines the potential of blockchain-based financial innovations in the energy sector, identifying key opportunities such as peer-to-peer energy trading and tokenization of green assets, alongside critical challenges including regulatory uncertainty, scalability issues, and the absence of sustainable business models. This study argues that the successful adoption of blockchain, particularly in developing economies, is contingent not merely on technological readiness but on the co-evolution of supportive regulatory frameworks and viable business models. Drawing on systematic review of existing literature and recent case studies, a conceptual framework integrating technology, finance, and policy is proposed. The findings contribute to the discourse on energy transition by providing a structured roadmap for policymakers, researchers, and industry stakeholders aiming to leverage blockchain for a more sustainable and inclusive energy future.

Keywords:

Blockchain , Energy Finance , Peer-to-Peer Trading , Tokenization , Policy , Sustainability